The Business Plan

The business plan is a blue print of the

business that the entrepreneur would like to
start.
Aim: To establish if a business idea will bring in
a fair return to one’s investment, will be
beneficial to the society, and will bring no harm
to the environment when it is operated.
There are many business ideas that may
look attractive to the entrepreneur at first, but
necessarily “doable”.
Goal: To assess the feasibility of the business
idea, develop business strategies to make the
business idea doable, and to use it for obtaining
resources, especially loans from financial
institution like banks.
According to the Department of Trade and
Industry, through the Bureau of Small and
Medium Enterprise Development (BSMED) the
following are the reason why an entrepreneur
still needs to make a business plan, no matter
how good the business idea seems to be;
1. Reduce, if not remove, the risk of losing
money invested in a poorly research or
unstudied business idea. The entrepreneur
should find out where one’s money is going
before letting go of it.
2. Avoid costly mistakes. Every sudden or
careless decision the entrepreneur makes for
the business entails cost that one might not
be able to recover.
3. Anticipate the financial requirements. It is always
wise to foresee sudden increases or decreases in the
demand for the product or service so that entrepreneur
can plan for the lean months and ensure that the
business will have enough resources to meet business
obligations during the periods when sales are low.
4. Organize the activities beforehand. As a road map
on unfamiliar territory, it allows the entrepreneur to
estimate how the business will perform in the future
and to prepare contingencies in case things will not
turn out as planned.
5. Assess actual performance against set goals. It
enables the entrepreneur to set targets in terms of
sales volume and revenues, as well as expenses,
among others. Once the business is put up, the
entrepreneur can always go back to the business
plan to compare the set actual performance against
the set goal.
6. Apply for financing from leading institutions. A
well prepared business plan can be the back-up
support to convince possible sources of capital
especially banks, that something good will come
out of the business idea.
 A business plan is very important to
various parties. Among those who need the
business plan are the management team,
shareholders, bankers, or creditors, customers,
suppliers, and employees. To gain their
confidence, these stakeholders will have to be
informed about what are the purposes,
directions, core business, and financial situation
of the business venture from the time it will start
and in the next few years based on its forecast.
Business Plan Outline
 1. Executive Summary

• Description of the proposed business and business model

• Description of the market opportunity to capture, or
market problem the business solves
• Reasons for why this is an attractive business opportunity
• Key distinction or differentiators of the business versus
competitors
• Overview of the sales, marketing, and operations strategy
and plan
• Description of the execution plan and timeline
• Overview of projected financials containing revenues,
cost, profits and assumptions.
Example of Executive Summary:
My T-shirt Company will offer personalized, good
quality, and fashionable printed casual T-shirt wear that are
attuned to the needs of the youth in Bulacan. Historical data
shows that there is an increasing demand for t-shirts among
high school and college students in Bocaue, Bulacan.
However, existing five big competitors are not able to meet
such demand resulting to a big gap. This means that there is
a big unmet demand of the market in the printed silkscreen
t-shirt. Our primary strategy is to offer customers a variety
of options for choosing their own custom shirts. Most of the
orders will be for white t-shirts; however other colored t-
shirts will be available for both women and men. The
customers may choose from the existing designs, supply
their own, or have our graphic designer create a design for
them.
Our business will initially operate a home-based and use social
media (e.g. Facebook and Twitter) to showcase designs and
actual T-shirts with silk screen designs for ease of browsing
and ordering. Any customer will have the option to pick-up
their merchandise or have it delivered at their convenience.
The pre-designed shirts will also be available on school
bazaars, local bazaars in Bocaue, and fairs on some occasions.
My T-shirt products have a number of competitive features that
will be used to its advantage to achieve market penetration
such as its large catalog of graphics and the affordability of the
shirts.
Initial capitalization for the business is Php 49,700 good
for a one-month expense. Expected revenue for Year 1 is Php
147,532.80 while total cost of goods sold amounted to Php
568,800.00.
 2. Management and Organization

• Company Name, Logo and Address

• Vision and Mission Statements
• Key personnel
• Workforce and Support personnel
• Organizational Chart
• Ownership, Capitalization, Compensation and
incentives
• External Management Support
Example:

• Company Name: My T-Shirt Company

• Logo:

• Address: 88 Ocampo Street, Bocaue, Bulacan

• Vision Statement: My T-shirt will be a leading provider of
personalized, good quality and fashionable printed casual
T-shirt wear that are attuned to the needs of the youth.
• Mission Statement: My T-shirt is a socially responsible
company providing high quality, personalized, and
reasonably priced printed T-shirt which caters to the
clothing needs of the youth in Bulacan.
• Key personnel: Manager
• Workforce and Support personnel: Graphic
designer/production assistant
• Organizational chart:
• Ownership: Single Proprietorship
• Capitalization: Php 49,700.00
• Compensation and incentives: Minimum
wage based on daily rate as provided by
law
• External Management Support: Parents
and Entrepreneurship teacher will be
tapped as Advisory Council
 3. Product/Service Plan

• Purpose of the product/service

• Product’s unique features
• Material requirements and sources of supply
• Process and equipment that will be used to
manufacture the product/render the service
• Production/Service Process and Controls
• Distribution logistics
• Regulatory and compliance issues
Example:

• Purpose of the Product

My T-shirt will offer customers a variety of
options for choosing their own custom shirts. Most
of the orders will be for white t-shirts; however
other colored t-shirts will be available both for
women and men who are looking for casual yet
trendy shirts. The customers may chose from the
existing designs, supply their own, or have our
graphic designer create a design for them.
• Product’s Unique Features
My T-shirt has two unique features. The
first is the wide array of graphic designs and
create your own or personalized design, graphics,
and slogans that connect with the customers and
reflect their opinions and personality. The second
unique feature is the high quality of screen
printing which is made from the premier
silkscreen ink and paints, and handled with
utmost care in every print. Below is the sample
of a T-shirt design.
Sample t-shirt
• Material and Equipment requirements and sources of
supply

The materials requirements and their sources are as follows:

• Production Process and controls that will be used to
manufacture the product

Below is the Silk Screen Process using the Photographic

Emulsion Method
1. Create your design
a. Print out a solid image design on a transparency paper
b. Or cut out a stencil pattern depending on the design.
2. Prepare the frame
a. Coat the screen with photo emulsion.
b. Leave it to dry in a darkroom from light and heat,
especially direct sunlight.
3. Transfer image
a. Lay the screen on top of a black cloth or board for
better light absorption.
b. Place the transparency or stencil on the screen with
scotch tape or lay a piece of glass over the image to hold it
tight to the screen.
c. Expose the emulsion under a light source, preferably
a light bulb or in direct sunlight, for 20-30 minutes to
harden.
4. Clean the screen
a. After emulsion has been exposed, removed
transparency.
b. Rinse off the ink on the screen with water until the
design can be seen.
5. Screen the shirt
a. Lay the shirt top of the silkscreen press.
b. Mount the screen in the clamps of the press and push
the screen down on your fabric.
c. Place a small amount of printing ink along the top of
the screen then pull it over the image with a squeegee.
6. Clean up
a. Lift the screen and remove the shirt to dry.
b. Immediately wash off the ink on the screen so it can
be used again in the future, as the ink dries fast and can ruin
the screen.
c. Iron or oven the shirt after has been dried to heat set
it and prevent the design from washing out after repeated
washing.
 The t-shirt printing quality controls will be ensured in
each of the step in the production process based on the
standard since screen printing is an old technique that has
stood the test of time. The Photographic Emulsion Method is
one of the most popular methods for printing onto t-shirts;
screen printing can produce durable and long lasting result.
However, a labor intensive initial setup means screen
printing is most cost effective when printing in bulk. When
screen printing complex designs or designs with more than
four to five colors, the owner manager will supervise and
work closely with the graphic artist/production assistant to
be sure that the bet quality will be produced as desired. The
quality control of the T-shirt is of utmost importance.
This means that the quality of the T-shirts to be
used and the prints needs to be top notch. A pattern
that fades and cracks or a t-shirt that shrinks and
rips easily will make the customer to come back
and repurchase. Quality t-shirts encompass several
factors, including fit, sizing, material, softness, and
weight. To ensure that these will be met and decide
which blank t-shirts to use is to get feedback of
some of the most popular blank t-shirts for
printing.
Then, personal canvassing in Divisoria of
each of the t-shirts will be done.
• Distribution logistics

My T-Shirt Company will initially operate home-

based and use social media (e.g. Facebook and Twitter)
to showcase designs and actual T-Shirts with silk screen
designs for ease of browsing and ordering. Any
customer will have the option to pick-up their
merchandise or have it delivered at their convenience.
The pre-designed shirts will also be available on school
bazaars, local bazaars in Bocaue, and fairs on some
occasions.
• Regulatory and other compliance issues

My T-Shirt Company will be registered as a

single proprietor enterprise with the Department Trade
and Industry provincial Office. A Barangay clearance
will also be secured before it applies for a Mayor’s
permit to operate as a home-based business micro
enterprise. The BIR registration will also be done after
getting all the necessary registration documents and
permit from DTI, Barangay, and Mayor’s Office. The
owner/manager and the graphic designer/production
assistant will be registered with the Social Security
System.
 4. Market Plan

• Market Analysis which includes demand and

supply vis-à-vis competitors
• Marketing and Sales Strategies
• Product/Service Characteristics or features
• Pricing policy
• Sales Projections
Example of Market Plan:
• Market Analysis which include demand and supply vis-à-
vis competitors
 The table before this slide shows that
there is an increasing demand for t-shirts
among the high school and college students
in Bocaue, Bulacan. However, the existing
five big competitors are not able to meet
such demand resulting to a big gap. This
means that there is a big unmet demand of
the market in the printed silkscreen t-shirt.
• Marketing and Sales Strategies

Marketing Strategy
An aggressive marketing campaign will
aim to increase the visibility for My T-Shirt. This
will emphasize the customer’s preference to
completely customize or personalize their design.
My T-Shirt will utilize a number of different
venues to communicate this message.
 Social Media – the company will be active on social
media platforms, specifically Twitter, Facebook, Instagram
and Pinterest, to increase awareness and visibility to the
younger generation, particularly the millennial.
Student organizations – the company will attempt
to gather data of the various student groups who actively
purchase shirts for their members. A linkage will be
established with them so that they become aware of the My
T-Shirt products. This will be achieved through a
combination of sponsorship of student organization events
as well as advertisements through tarpaulins and flyers that
specifically target this demographic.
Sales Strategy
The sales strategy will emphasize that ordering and
buying a shirt from My T-Shirt is very easy, accessible, and a
pleasing experience. The sales effort will work on the possibility
of having its own website in the long run, the main tool used for
ordering. It will be quite important to have a friendly, easy to use
web interface in the future course of the business.
My T-Shirt will also rely on three other factors to help
boost sales. The first is exemplary customer service. Having
excellent service will provide the customer with the feeling that
the business is looking out for the customer’s interest. Second,
when a customer places an order, they will probably be excited
to see the finished product, so My T-Shirt will ensure the shortest
turnaround time possible. Lastly, sales will be boosted by
offering customers a very good product. My T-Shirt will
ensure economic value for the t-shirt without sacrificing its
quality.
• Product Characteristics or Features

My T-Shirt products have a number of competitive

features that will be used to its advantage to achieve market
penetration.
Large catalog of graphics – customers will be offered an
array of designs or graphics to choose from which are
conceptualized by the in-house graphic designer. Your T-Shirts!
Pays a royalty for use of these graphics.
Affordability of the shirts – teenagers still being
dependents and having a limited budget to splurge, t is favourable
for them to have access to inexpensive yet quality shirts.
• Pricing policy

My T-Shirt Company will adopt the differing price based on

the size and the complexity of the design policy. As such, below is
the pricing scheme that will be adopted:
• Sales Projections

Note: There will be a 10% increase in the quality of T-shirts

to be sold as well as its price.
• Market Analysis Summary

The demand for silkscreen printed shirts in Bulacan has

shown steady growth over the last 5 years. It was observed that
high school and college students are among the biggest market
for the product. These market segments favor trendy and quality
shirts t an affordable price. To increase market penetration, My
T-Shirt will offer a large catalog of graphics aside from the
affordable shirts to its intended market segment. At the same
time, aggressive marketing campaign will be done to increase
the visibility for My T-Shirt through the use of the social media
and tapping the various school student organizations. My T-Shirt
offers price differential based on the size and the complexity of
the t-shirt design with price ranging from Php 160-190.
 5. Financial Plan

• Start-up Costs requirements

• Financial Projection
• Breakeven analysis
• Budget
Start-up Summary
5-Years Profit/Loss Statement
5-Years Cash Flow
5-Years Balance Sheet